Tag: Trial Balance

Alex Trading has prepared their trial balance for the month.

The total of the debit column is not the same as the total of the credit column.

The account used to record the trial balance difference is called?

Select ONE answer:

1. There are several owners
2. The company has limited liability
3. The shareholders receive dividends
4. The shareholders benefit from limited liability

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – The suspense account is used to record the trial balance difference, and, once the errors in the trial balance have been identified, the corrections are posted to the suspense account. Once all the errors have been corrected, the suspense account should balance.

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